Nikkei likely to retest nearly 5-yr high, BOJ set to start super-loose policy

Sun Apr 7, 2013 7:13pm EDT

TOKYO, April 8 (Reuters) - The Nikkei share average is
expected to open higher and retest the 13,000-mark on Monday,
led by exporters as the yen continued to tumble against the
dollar on a report that the Bank of Japan would begin buying
longer-dated bonds immediately to beat deflation.  
    The Nikkei is likely to trade between 12,950 and
13,200, strategists said, shrugging off a weaker-than-expected
U.S. jobs report, which saw just 88,000 payrolls added in March,
well below market expectations for a 200,000 increase. 
 
    Nikkei futures in Chicago closed at 13,090 on
Friday, up 2.2 percent from the Osaka close of 12,810.
    "The nonfarm payrolls were very bad. The New York stocks
fell. But for the Japanese market, the currency is a much more
important factor. The yen depreciation continues to 98 to the
dollar," said Takashi Hiroki, chief strategist at Monex Inc.
    The yen fell as much as 1.2 percent to 98.78 to the
dollar, the lowest since June 2009, after the Nikkei newspaper
said the Bank of Japan would this week buy 1.2 trillion yen of
government bonds with more than five years remaining to maturity
as it begins its super-loose monetary policy. 
The Japanese currency was last traded at 98.56 to the dollar.
    On Friday, the Nikkei surged as much as 4.7 percent to above
13,000 for the first time since August 2008 before succumbing to
profit taking to close up 1.6 percent at 12,833.64. The
session's gain broke the resistance at the 50 percent
retracement of its slide from February 2007 to October 2008, at
around 12,650.
    The broader Topix index climbed 2.7 percent to
1,066.24 in the previous session.    
    The benchmark Nikkei has surged 48 percent since
mid-November, when Prime Minister Shinzo Abe unveiled in his
election campaign expansionary fiscal and monetary policies to
revive the world's third-largest economy.
                     
> S&P posts 2013's worst weekly drop on jobs data           
> Yen slides as BOJ begins new age with a bang            
> Treasury yields sink as jobs data hint at drag on growth 
   
> Gold rallies as weak U.S. jobs data affirms Fed easing  
> Brent oil falls to 8-month low weak U.S. jobs report     

    STOCKS TO WATCH
    --TOKYO ELECTRIC POWER CORP 
    Radioactive water has apparently leaked from another
underground storage tank at the crippled Fukushima Daiichi power
plant, Tokyo Electric Power Co said on Sunday. 
    --GS YUASA CORP, ALL NIPPON AIRWAYS, JAPAN
AIRLINES 
    With a successful flight on Friday, Boeing moved closer to
proving that a revamped safety system can prevent batteries on
its new 787 Dreamliner from catching fire or overheating, and
getting the plane back into service. 
    --TOSHIBA CORP 
    Nuclear consortium Fennovoima said it would choose Russia's
Rosatom or Toshiba to supply a reactor for its planned nuclear
power plant in northern Finland, dropping France's Areva
.
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